Chief Executive Donald Tsang Yam-kuen unveiled initiatives costing HK$13.8 billion in his policy address. The bulk of the money will go towards improving the environment and kindergarten education over the next five years. The extra spending comes less than a year after the government reported a budget surplus of HK$14 billion and a return to relative fiscal health for the first time since the handover. The financial secretary said in February that the government still needed to 'save up for a rainy day'. Apart from the HK$13.2 billion earmarked for education and the environment, other spending included HK$100 million over five years for the Hong Kong Design Centre. The Arts and Sports Development Fund gets HK$40 million, while HK$70 million a year will be spent on the training of elite athletes, and grass-roots sports development. Derek Lai Kar-wan, president of the Hong Kong and China division of accountants' group CPA Australia, said it was difficult to gauge whether the additional spending was prudent. But he said the emphasis on combating pollution and improving education and social welfare boded well. Steve Marcopoto, chairman of the American Chamber of Commerce which is leading an environmental call to arms, described the government's decision to spend HK$3.2 billion to help upgrade or replace 74,000 older diesel vehicles and offer incentives for more fuel-efficient cars as a 'wise move and a wise investment in the long run'. Alex Fong Chi-wai, chief executive of the Hong Kong General Chamber of Commerce, said: 'It's not about how much is spent but whether these schemes lead to the intended effects.'